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Is the UK government set to abolish child trust funds?

The socially conscious Labour Party introduced Child trust funds back in 2002, which saw each and every child in the UK receive £250 at birth and a further £250 on their seventh birthday. The idea was that these funds, which cannot be touched until the child is 18 years of age, would give UK youngsters a financial lifeline in later life. There had also been hopes that parents around the UK would also contribute to their children's trust fund but ultimately due to mixture of misunderstandings and the recession this is just not happen.

However, the influential Institute for Fiscal Studies claims that while around 800,000 children are born in the UK each year the funding targeted at that the child trust fund could be better used to paying off national debt and reducing public sector expenditure. So it seems that the authorities are willing to spend billions upon billions of pounds on the UK financial system, cover their own expenses, maintain final salary pension schemes in the public sector but they are balking at paying £500 to each and every child in the UK.

Many people will see this as literally robbing the poor of the UK!

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